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Effective CRM through Customer Knowledge management
 Faced with extremely tough competition and flat sale growth companies are finding hard to secure customer loyalty
 Research has consistently shown that it costs four to five times more to acquire a new customer compared to retaining an existing one
 CRM provide the seamless integration that touches customer
 To effectively implement the CRM solution it is very important to identify real knowledge of different types of customers
How to get knowledge about customer
 CRM applies this knowledge to develop and design marketing strategies
 Develop and cultivate, long lasting mutual beneficial interaction and relationship with customer
 It is essential to build knowledge instead of just accumulating the data
 Knowledge architecture for CRM will reduce the risk element involved in taking strategic decisions to retain customer loyalty
 Decision process will be more agile and effective
What is knowledge management
 Core of any knowledge management implementation is to abstract vital and meaningful knowledge from the voluminous amount of data available from the variety of internal and external sources and ensure its practical use
 CRM value chain
 Proposed Customer Knowledge management
REGAIN MANAGEMENT
 Customer research show that service quality, relationship building and overall service satisfaction can improve business relationship
 Organizations have to develop innovative measure to address their present customers , acquire new ones and at the same time initiate procedures to win back lost customers
 Regain management is aimed at winning back customer which has already given the notice to terminate the relationship or already ended
 Its strategies focus for profitable acquisition of lost customers segments
CUSTOMER LIFE TIME VALUE
 QUANTIFYING THE VALUE OF CUSTOMER IS ABSOLUTELY ESSENTAIL IN REGAIN MANAGEMENT
 WITH OUT KNOWING THE VALUE OF CUSTOMER , IT IS DIFFICULT TO KNOW HOW MUCH THE COMPANY SHOULD SPEND IN ORDER TO REACQUIRE THE CLIENT
 LTV ASSISTS A COMPANY IN A VARIETY OF APPLICATION LIKE PRODUCT DEVELOPMENT , MEDIA SELECTION
 LTV = CUSTOMER MARKETING - PRDUCT MARKETING
 MORE SALE COMPANY MAKE TO ITS ORIGINAL CUSTOMER , THE HIGHER WOULD BE THE PROFIT MARGINS FROM THOSE INDIVIDUAL SALE
WHY CUSTOMER QUIT COMPANY
 CORE SERVICE FAILURE
 BECAUSE OF COMPETITOR ACTIVITY
HOW TO REGAIN LOST CUSTOMER
 CUSTOMIZATION
 DIFFERENTIATION STRATEGY
 “WOW” SYNDROME
CUSTOMIZATION
 WHEN COMPANY WOULD TRY TO RE-ESTABLISH CONTACT AND BELIVE THAT IT WOULD BE ADVANTAGEOUS TO REGAIN THE CUSTOMER ( FALL IN 20:80 RULE)
 PROFILE WOULD BE CREATED BASED ON EARLIER PURCHASING AND USAGE
 THEN COMPOANY WOULD GO FORWARD TO CUSTOMER TO RECONSIDER THE BUNDLE OF OFFER
 THE CUSTOMIZATION STRATEGY WOULD BE OPERATIONAL FOR BOTH THE PUSH AND PULL FACTORS
DIEEERENTIATION
 BECAUSE OF (FALL IN 20: 80 RULE) HIGH LTV, CUSTOMERS ARE CONISDERED AS SEPARATE SEGMENT AND COMPANY WOULD PROVIDE THEM WITH ADDITIONAL
 DIFFERENTIATION IS THE ABILITY TO PROVIDE UNIQUE AND SUOERIOR VALUE TO CUSTOMER IN TERMS OF SERVICE QUAILTY , SPECIAL FEATURES OR AFTER SALE SERVICES
 SUCH STRATEGY APPLICAL IN PUSH CASE
“WOW” SYNDROME
 APPLICABLE WHEN A CUSTOMER ORDERS SOMETHING AND IT IS DELIVERED INCORRECTLY
 CORRECT RESPONSE WOULD BE APOLOGY , FOLLOWED BY THE BONUS